Question

During 2018, Speedway Financial Corporation had the following held for trading investment transactions:

Feb. 1 Purchased 580 CBF common shares for $34,220.

Mar. 1 Purchased 780 RSD common shares for $21,840.

Apr. 1 Purchased 7% MRT bonds at face value, for $65,000. Interest is received semi-annually on April 1 and October 1.

July 1 Received a cash dividend of $3 per share on the CBF common shares.

Aug. 1 Sold 180 CBF common shares at $57 per share.

Sept. 1 Received a cash dividend of $1.40 per share on the RSD common shares.

Oct. 1 Received the semi-annual interest on the MRT bonds.

1 Sold the MRT bonds for $67,000.

Dec. 31 The market prices of the CBF and RSD common shares were $54 and $29 per share, respectively.

Speedway had the following held for trading investment transactions in 2019:

Mar. 1 Sold 400 CBF common shares for $23,200.

June 1 Purchased 2,200 KEF common shares for $30,800.

Sept. 1 Received a cash dividend of $1.40 per share on the RSD common shares.

Oct. 1 Sold 390 RSD common shares for $12,090.

Dec. 31 The market prices of the RSD and KEF common shares were $33 and $11 per share, respectively.

Record the above 2019 transactions including any required adjusting entries, continuing the use of the fair value through profit or loss model. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record entries in the order presented in the question.)

Date	Account Titles and Explanation	Debit	Credit
Mar. 1	Cash
	Realized Loss on Held for Trading Investments
	Held for Trading Investments
June 1	Cash
	Dividend Revenue
Sept. 1	Cash	2,275
	Interest Revenue		2,275
Oct. 1	Cash	67,000
	Realized Gain on Held for Trading Investments		2,000
	Held for Trading Investments		65,000
Dec. 31	Unrealized Loss on Held for Trading Investments	1,220
	Held for Trading Investments 1,220

Show how the investments would be presented on the statement of financial position at December 31, 2019.

SPEEDWAY FINANCIAL CORPORATION

Statement of Financial Position (Partial)

December 31, 2019

Current Assets

Held for Trading Investments $ _____________

Determine the balance in each of the income statement accounts that are affected in the transactions above and indicate how they would be presented on the income statement for the year ended December 31, 2019. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)

SPEEDWAY FINANCIAL CORPORATION

  Income Statement (Partial)

December 31, 2019

Dividends

Dividend Revenue $ __________________

Realized Gain on Held for Trading Investment __________________

Interest Revenue ___________________

Total amount     ________________________

Answer 1

Date	Account Titles and Explanation	Debit	Credit
Mar. 1	Cash	$      23,200
	Realized Gain on Held for Trading Investments		$        1,600
	Held for Trading Investments (580 - 180 )shares  x $54		$      21,600
Jun.1	Trading Investments	$30,800
	Cash		$30,800
Sept.1	Cash ($1.40 x 780 shares)	$   1,092.00
	Dividend Revenue		$   1,092.00
Oct. 1	Cash	$ 12,090.00
	Realized Gain on Held for Trading Investments		$      780.00
	Held for Trading Investments (390 x 29)		$ 11,310.00
Dec. 31	Unrealized Loss on Held for Trading Investments (41,720 - $37,070)	$4,650.00
	Held for Trading Investments		$4,650.00
Security	Carrying Amount	Fair Value
RSD common	$                                                                                                         10,920.00	$ 12,870.00
KEF Common	$                                                                                                         30,800.00	$ 24,200.00
Total	$41,720.00	$37,070.00
Show how the investments would be presented on the statement of financial position at December 31, 2019.
SPEEDWAY FINANCIAL CORPORATION
Statement of Financial Position (Partial)
31-Dec-19
Current Assets
Held for Trading Investments	$37,070.00
Determine the balance in each of the income statement accounts that are affected in the transactions above and indicate how they would be presented on the income statement for the year ended December 31, 2019. (Enter loss using either a negative sign preceding the number e.g. -2,945 or parentheses e.g. (2,945).)
SPEEDWAY FINANCIAL CORPORATION
Income Statement (Partial)
31-Dec-19
Other revenue
Dividend Revenue	$                                                                                                           1,092.00
Realized Gain on Held for Trading Investment (780+ 1600)	$                                                                                                           2,380.00
Other expense
Unrealized loss on trading investments	$4,650.00